stock market tips

Stock Market Tips: An Ultimate Guide for Young Professionals Couples to Retire Early and Rich

(A revolutionary thought which may change your life for better)

Race is on amongst the young professional couples,

To have the best of lifestyles.

Plans to ensure the best education and quality of life for their kids.

Aspiration to retire at younger ages of say 45 to 50 years and enjoy life after that

In this share market tips article, I am trying to address the issue relating to the young couples, in the age groups of 25 to 35 years. With excellent professional qualifications, they carry good pay packets and enjoy a healthy lifestyle. They have all the modern day comforts at their disposal.

After paying for investments, for tax planning, they are still left with some surplus. They can earn more on these savings by investing in equity through stock market trading.

This group, in the usual course of life, does not have any significant liability coming their way in the next 10 to 15 years. They will need to use their savings for the higher education of their kids, which will be the first major event, for using the savings.

The options for investing this surplus to earn more than the bank deposit rates are limited. These options are also fraught with risks, not worth taking. One of the options, which are advocated, is to invest in the equity-linked mutual funds. These funds are projecting annualized returns of 15 to 18% subject to so many if’s and buts’.

I don’t understand, why everyone is advocating investing in equity-linked mutual funds. Why no one is encouraging these young couples to learn the art of trading on the stock market and make more money.

These young couples can learn what share market is. They can grasp the art of technical analysis of stocks & be an expert. They can take their decisions & make more money. They need not put their hard-earned money in the hands of others. It’s a proven fact that you can at least double your income from the same corpus if you trade on the stock market. Trading is much better than investing in the stock market.

Difference between Investing and Trading:

Let me explain the difference between investing and trading in Indian equity markets. Investment is associated with a long-term horizon. Investment is usually made based on a research report of a company based on its future plans. You invest an amount in the shares of a company with a time frame of say 3 to 5 years, at a particular prevailing price. You expect the price to rise in the next 3 to 5 years. , as suggested by the research analyst’s stock recommendations.

The important point to note is that the research report is based on the number of assumptions. These assumptions are relating to the projections given by the company. These forecasts are based on the economic conditions prevailing. These also depend on the Government policies, global economic scenario, and unexpected developments. For reasons, which are beyond the control of the company, the company is not able to achieve the projections. As a result, in fact, the share price declines rather than appreciating. But the investor has to wait for the term agreed upon before exiting. Whereas, the trading is done based on the price movements. The technical charts indicate this with technical analysis of stocks. Again there is a difference between research and technical analysts.

In the case of trading with the help of technical analysis, we buy a stock, when the technical indicators are suggesting an up move on the charts. We exit when the same indicator suggests reversal of the move. Then we wait for the next up move, or we move to another stock, which is indicating an up move.

To avoid, frequent trades, one can choose a reasonably longer period on technical charts. One can use weekly or monthly time frame. Then, one needs to choose the technical indicators, which are more stable. All this is part and parcel of the learning process of what is a stock market for stock trading.

By trading, I am referring to the trading in equity cash segment only. Trading in derivatives like futures and options or commodities or currency is riskier. Trading in equity cash segment means you are buying on the delivery basis only. The shares you bought will get credited in your Demat account. In this case, you will trade only to the extent of funds with you without any leverage. Never trade with borrowed funds. Warren Buffet said that “Trading in derivatives with leveraged funds is a recipe for disaster.”

How making money in trading is easier when compared to investing ?

Let me explain, how you can make more money in trading rather than investing in the Indian share market. Let us look at the following chart.

You see the black spots on the graph. You got a buy signal on the first spot on 09.10.2015. You will understand this when you will learn the process of trading with the help of technical analysis. Suppose, you bought the stock at 41.24. (These figures are in US$ terms). On 04.01.2016, you got the sell signal, and you exited at 43.88. Thus you made 2.64. Again on 18.02.2016, you got the buy signal and again bought the stock at 38.60. On 24.04.2016, you got the sell signal, and you exited at 43.88 and made a profit of 5.28. Over a period of say seven months, you only took two trades and made 7.92 i.e. 32.92% pa of the amount you invested.

But in case you were simply holding the stock, you would have made only 2.64 in the same period. Thus, you’ve done three times the profit by trading on the technical chart. Following the technical indicators and share market tips is easy. It does not need any space science to understand the same.

Why are these young couples not taking the right step of learning stock market trading and be an expert?

Vested interests have created a fear in the minds of the young professionals. That, trading in equity markets is hard, it’s risky, it’s luck game plan, etc.

Yes, it’s difficult, if you don’t know how to do it. But, every action in our day to day life, which, we do is difficult if we don’t know how to do it? So the simple answer is that we must learn to do any action before attempting the same so that it’s easier for us to do. Exactly, the same way, we must learn what stock market is. We must learn how to invest or trade in share market, before attempting to do the same.

Yes, it’s risky. But every action in our day to day life has a risk attached to it. There is a potential risk for everyone on the road and particularly in crossing the road. If crossing a road is a must for you to reach your destination, then what you do to cut or end the road risk? You cross the roads at zebra crossings and traffic signals. You look at both sides so that you are not hit by any vehicle. If someone tries to cross the road by ignoring the safety precautions, that too during peak traffic hours, then he is likely to suffer. You may call this man as insane or with suicidal tendency.

If you don’t know swimming, you will not jump into the pool of 5 or 6 feet depth. Then how you can even think of taking a plunge into the turbulent waters of the sea of the stock market? It’s important to learn stock market trading skills before starting trading on the stock exchange.

I do not agree that stock market trading is “luck game plan.” Luck plays a role in every aspect of our life. But still, you need to upgrade your skills for success in any sphere of life.

Then why to ignore the share market basics skills required for being a successful trader. Skills are a must for making money and creating wealth in stock market trading. We need not blame the luck for our failures?

Must remember 99% of success depends on the skills you get & 1% on the Unknown factor known as LUCK.

“STOCK MARKET TRADING is the EASIEST, HONEST, CONSISTENT and LEGITIMATE way of creating wealth.” This is true if you know the art of trading on the stock markets.

All decisions are with you. You decide which stock to trade. You choose how much money to invest. You decide, which time frame to operate. You determine your profit target and everything related to this activity. So you are your master not answerable to anyone.

You have no opportunity to be dishonest with anyone. When you make money, you need not thank anyone, and when a trade goes against, you need not feel sorry to anyone.

If you have the right guidance or have become an expert, profits will follow regularly.

You have no opportunity to make any illegal trade. So anything you earn from the system is legitimate.

1

Now what the young couples need to do to be an expert and professional traders in stock market trading?

One Right Step Can Change Your Life For Better. Take the first right step towards acquiring excellence and expertise in the field of Stock Market Trading.

2

How much time do you need to invest?

Few hours invested can change your life for better. Spend a few life-changing hours and Discover Financial Freedom following you. Before taking a jump into turbulent waters of the stock market put on the life jacket. Spending few hours in understanding the process of making the right trading decision. You have to learn the right and perfect strategies

Only one hour a week. Is it too much for achieving lifetime financial freedom? For retiring young and for enjoying luxurious lifestyle after that, you need to invest a little time.

3

How much investment is required?

It depends upon the surplus available to the couples. They can start with just Rs10000/- per month to any amount. They can be increased in the later years. As the pay packets will increase and the surplus available will increase.

Suppose, you start with an investment of Rs25000/- per month and increase every year by 10%. With profits of 25% annually, at the end of 20years, you will have a corpus of Rs11.22 crore.

4

Does this couple need to work after that?

So take the 1st right step & start learning the art of making money from stock markets.

Stock Market Trading Is An Art in itself?

An Art is the expression or application of human creative skill and imagination. Art is normally presented in a visual form such as painting or sculpture. Art is producing works to be appreciated primarily for their beauty or emotional power.

A layman becomes an artist when he or she can draw lines or pictures on any surface. An artist becomes a “Fine Artist” only when he can exercise complete control on the movements of his fingers with pencil or brush on any surface.

Same is the case with an “immature” or “naïve” trader and a “mature” or a professional trader. A naive trader takes trades as a layman who simply knows to draw lines on a surface. An experienced trader with fine skills will make an excellent trade as the fine artist will draw a perfect picture with exceptional skills acquired over a period.

Mr M S Vohra is SEBI Registered "Investment Adviser" Reg No INA100000135 ( CTP, Post graduate Mathematician, 15+years of Trading experience
Mr M S Vohra is the head of Technical Research at Tradingstation.in is Post graduate in Maths from Delhi University with distinction. He retired from the Senior Management Grade of a nationalized bank.He has been granted "Certificate of Registration" by SEBI as "Investment Adviser" vides Registration No INA100000135 valid from 22.08.2013 to 21.08.2018. He is one of the first 11 investment advisors registered by SEBI, including 4 corporate houses and 7 individuals

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Pair trading strategies with options for high profits and to protect capital.

Pair trades such as - Cash with options - Futures with options - Options with options.Strategies can be used in all time frames including intraday and all segments such as EQUITY, COMMODITIES & CURRENCY.

Trade call services - Success Rate more than 90%

Stock Market Trade Calls performance from August 2016 to Jan 2017, as on 09.02.2017.All calls are taken in our personal trade account and it can be verified anytime.

Now avail our Trade calls service in the DERIVATIVES also.

We provide trade calls service in Derivatives as Pair trades such as Futures with options and options with options. This ensures very high profits in case the trade moves in the right direction and very nominal loss in case the trade moves adversely.Our trade calls are based on the basic triggers from our very highly successful strategy UUPS.